China Leads Asian ABS Markets Higher as Cost Pressures Mount

Asian acrylonitrile butadiene styrene (ABS) markets continued to rise in the week ending October 16, 2026, with China recording the strongest price increases following the National Day holiday. Gains across Southeast Asia were more limited, as high prices and weak downstream demand discouraged buyers from making fresh purchases. Rising crude oil and feedstock costs remained the main factors supporting the market, although persistent demand weakness continued to restrict further increases.

China Records the Strongest ABS Price Increases

China’s import and domestic ABS markets moved higher as sellers returned from the holiday break with firmer price expectations. The increase was more pronounced in the domestic market, while import prices also reached their highest levels in several months.

Import prices for injection-grade ABS from all origins in China increased by $40–50/ton compared with the week before the holiday. The midpoint of the price range reached its highest level since early June.

Domestic prices climbed even more sharply, rising by approximately CNY 800/ton ($120/ton) from pre-holiday levels. This pushed the weekly average to its highest point in nearly six months.

The rally followed subdued spot trading before the holiday, as sellers sought to reflect the rapid increase in production costs in their offers. Market participants reported firm indications from producers and further price revisions. Some sellers anticipated additional increases if crude oil prices remained elevated. A Chinese trader noted that sellers continued raising their offers, supported by strong cost pressures.

Southeast Asian markets also moved upward, but at a slower pace. Buyer resistance increased as offers rose, with many purchasers reluctant to follow the latest price hikes.

Higher Crude Oil Costs Support Prices Despite Styrene Decline

Upstream costs remained the main driver of the ABS market’s upward movement. Brent crude futures gained approximately 5% week on week, reaching $109.86/barrel on October 16. The increase added to producers’ cost concerns and encouraged further upward adjustments to ABS prices.

However, movements across individual feedstocks were mixed. Spot styrene prices fell by $90/ton from the more-than-four-year high of $1,450/ton CFR China reached late in the previous week. Acrylonitrile and butadiene prices, meanwhile, remained broadly stable at their respective multi-month highs.

Despite the correction in styrene, overall production costs remained elevated, allowing sellers to maintain firm pricing positions. In China, post-holiday price adjustments more than offset the impact of the recent decline in styrene.

Higher freight charges also added pressure to Chinese ABS exports to Southeast Asia. According to a producer source, freight for a 20-foot container from China to Southeast Asia had reached around $2,000, potentially pushing up prices for Chinese-origin resin in regional markets.

Weak Demand Limits Further Price Gains

Despite the strong cost-driven recovery, demand remained a major obstacle to the Asian ABS market. In Southeast Asia, buyers increasingly resisted higher offers as prices moved beyond levels that downstream converters considered acceptable. Several market participants preferred to delay purchases and continue operating with just-in-time inventory strategies.

A Vietnamese trader described Chinese offers as unstable and said existing stocks were sufficient for immediate needs. The trader chose to wait, concerned that prices could decline sharply following the recent rally. Another Vietnamese converter also considered current prices too high to justify additional purchases, highlighting the gap between sellers’ firm offers and buyers’ willingness to pay.

Demand in China appeared somewhat more supportive after the National Day holiday, but this did not necessarily indicate a broad recovery in consumption. Once initial restocking requirements were met, the sharp rise in domestic prices could also encourage buyers to adopt a more cautious approach.

Without a meaningful improvement in demand, sustaining further price increases through cost support alone could become increasingly difficult. China may continue to outperform Southeast Asia, supported by post-holiday trading activity and potential macroeconomic support measures. In contrast, Southeast Asian markets could see more limited gains

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